Chapter 16The Brand Lever: It's Not What You Think

Netflix didn't become what it is today because they did a Super Bowl ad or blanketed cities with billboards. They built their brand by encouraging people to try Netflix, then delivered a consistently great experience—whether it was red envelopes arriving quickly or bingeworthy entertainment easy to watch anytime, anywhere.

As a company, Netflix famously has very empowered product teams. They are expected to make the right decisions for the business. This was put to the test when the team in charge of the homepage converting people from a free trial faced a decision that could cost Netflix tens of millions in lost revenue.

When they notified customers before their credit card got charged at the end of their 30-day trial, more people ended their subscriptions who might have otherwise just forgotten to cancel.

The team had to choose: more respectful, proactive notice that maintains a positive brand impression or get tens of millions in extra revenue each month.

They decided Netflix's brand reputation was the right choice for future growth. And they were right; that decision was tens of millions of global subscribers ago.1

Brand isn't done well by most tech companies because it is largely misunderstood. It is presumed to be a company's name, logo, colors, design, and tone of voice—all things Netflix also does very well. Brand includes all this, but it is more about a consistent experience across every aspect of how a company acts—it's ...

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